Ten years of HNX stock market: Expanding scale and improving quality

(VEN) - After 10 years of operations (March 8, 2005-March 8, 2015), the stock market on the Hanoi Stock Exchange (HNX) has effectively developed, contributing to raising capital for the economy.

Efficiency

The number of businesses listed on the HNX has significantly increased after 10 years of operations from 6 to 367 with total value of listed shares of VND95.133 trillion. Liquidity has increased by several hundred times from an average of VND3.7 billion per day to VND807.8 billion per day. In particular, the trading volume of 183.12 million shares with total value of VND1.652 billion on March 6, 2012 hit a record.

The quality of corporate administration and the transparency of information have been enhanced. Since 2013, the program on rating the announcement and transparency of information on the HNX has become an annual activity, contributing to improving the market quality. The Corporate Information Management System (CIMS) on the HNX has been modernized. Businesses can quickly publish information and strengthen two-way communications. To date, 95 percent of a number of listed businesses have used the CIMS.

The trading system has applied the core i5 processors and has been able to order matching on memory with processing speed of up to 20-30 million orders in one trading session (about 15,000-20,000 orders per second).

Listed businesses on the HNX have raised more than VND58.787 trillion for trading and production activities. This capital has been particularly significant during periods of high interest rates and difficult access to bank loans.

Expectations

The Unlisted Public Company Market (UPCoM) has been put into operation since 2009 to narrow the free transaction market, ensure efficiency in state management and protect the interests of investors participating in the stock market. After nearly six years of operations, the UPCoM has seen the participation of 173 companies with total transaction value of more than VND24.425 trillion. Liquidity has also strongly increased from an average of VND4 billion per day to VND21.9 billion per day.

After 10 years of operations, the HNX has strongly changed and significantly contributed to the formation and development of the Vietnamese stock market.

The UPCoM has met set objectives to help investors obtain basic information about companies, contributing to ensuring transactions in a convenient, easier and safer manner. To increase the attractiveness of the UPCoM, the HNX has changed transaction registration and price amplitude, added the continuous order matching method, applied online transactions and used the CIMS in information announcement.

On September 15, 2014, the prime minister issued Decision 51/2014/QD-TTg on capital pestment, sale of shares and transaction registration on the stock market. According to a decision, within 90 days from the date of issuance of the registration certificate, joint-stock companies have to implement stock transactions on the UPCoM. The HNX has also adopted solutions to shorten time and simplify procedures for businesses. Thanks to a decision and efforts of the HNX, the UPCoM is expected to be strongly developed in the coming time.